HOW TO STUDY FOR THE CERTIFICATION EXAMINATION

by Dr. Aaron Rose

You have made a major decision to become certified. It is not only recognition by your peers but should also be recognized by your employer. The question is: "How do I get ready for the examination?" You have been working as a cost engineer but like many of your peers, particularly those working for a large company, you have become specialized. You have obtained information for the exam. A list of exam topics indicates that you must know more than what your present job entails. If the material is not new, it may have been covered in your college courses, but it has been some time since you studied that material. The idea of certification is that you must be knowledgeable in all aspects of cost engineering. What should you do now? You should take the outline and designate those items that you know well. This material will require only a cursory review probably a short time before the exam. The remainder of the material ought to be divided in two: the material that has been covered in your college class or in a continuing education course and a second category of new material. At this point, it is important to take stock of how best you learn or relearn new skills, ideas, etc. Some of us learn easily on an individual basis with a text and sample problems. Others learn best through a formal education program or short course. For this group the skills seminar offered each year at the annual meeting and during the month of January, ought to be investigated. A third group learns best in a small group where there is a lot of give-and-take and an opportunity to ask and answer questions. This introspection and evaluation period when you decide how best you learn is very important. This can save you time and, probably, money because you can then plan your study campaign. At this point, you should consult the "Required Skills and Knowledge of a Cost Engineer." Although not divided in exactly the same way as the outline for the exam, the material is all there. This information can help you focus on what must be learned. There are literally hundreds of specialized seminars available to cover the various parts of the

examination. If your employer will support this effort or you are willing to personally pay for the seminar, you can get some concentrated learning. The local university or college may have a course in a particular subject that you need. The two-day AACE skills seminar (referred to earlier) does not cover all the subjects; there is not time in a two-day seminar, but it will help you with some subjects and will also help you to plan for further study in areas in which you feel weak. A number of the local sections have arranged tutoring sessions for those members interested in certifying. The tutors are CCCs, CCE or someone expert in a particular area. Others have arranged study sessions with all candidates together with an instructor. Some sections have formal courses for those preparing for the exam. You need to investigate your local area and your section to find the mechanism that is best for you. If there is much material in your "new" category, this ought to be attacked first. This allows for some absorption time before you take the exam. Obviously, you ought to set a date for taking the exam as soon as you have put the material in the three categories of "new, relearn, and know." Don't say that you will take the exam when you have finished studying; that won't get the job done. Set a date and plan your studying accordingly. A PERT, CPM, or precedence diagram serves a very useful purpose as part of your planning. As we all know the diagram may be modified but you won't be prepared unless you set a goal.

AACE INTERNATIONAL RECOMMENDED PRACTICE NO. 11R-88 REQUIRED SKILLS AND KNOWLEDGE OF A COST ENGINEER
Prepared by the AACE Education Board; January 1999

SECTION 1 -- SUPPORTING SKILLS AND KNOWLEDGE Engineering Economics Terminology Computers Statistics and Probability Optimization Productivity Management Human Relations-Behavioral Science Organizational Structures Measurements SECTION II -- COST ESTIMATING Estimating Basics Contractor's Costs Owners Costs SECTION III -- COST CONTROL Work Breakdown Structure and Code of Accounts Earned Value (also Achieved and Accomplished Value) Key Cost Control Techniques SECTION IV -- PLANNING AND SCHEDULING Planning Basics Scheduling Basics Schedule Control SECTION V -- CONTRACT MANAGEMENT Contracting Arrangement Contract Administration SECTION VI -- ECONOMIC ANALYSIS AND BUSINESS PLANNING Budgeting and Cash Flow Value Engineering

AACE International Certification Exam

Introduction Certification as a Certified Cost Consultant or Certified Cost Engineer requires passage of a written examination including preparation and acceptance of a professional paper on a Cost Engineering subject. This document provides guidance for preparing to meet these requirements. The Written Examination Exam Basis The purpose of any professional certification or licensing program is to provide a mechanism to officially and publicly recognize the capabilities of an individual in a professional area. Certification as a Certified Cost Consultant or Certified Cost Engineer recognized holders of those certificates as having capabilities encompassing the functions incorporated within the definition of Cost Engineering. Specifically: Cost Engineering is that area of engineering practice where engineering judgment and experience are utilized in the application of scientific principles and techniques to problems of cost estimation; cost control; business planning and management science; profitability analysis; and project management, planning and scheduling. It is this definition of Cost Engineering that provides the basis for certification exam design -- the exam must test proficiency across these areas. The definition of Cost Engineering and the Required Skills and Knowledge of A Cost Engineer document are the basic "scope" documents for the certification exam. In recognition of this, at least 70% of the questions will relate directly to the basic skills document; the remainder will explore more advanced areas. Exam Schedule There is a 2nd Quarter and a 4th Quarter exam. The 2nd Quarter exam is always given on the Saturday preceding the Annual Meeting at the meeting site and then two weeks later at different sections. The 4th Quarter exam is held the first Saturday in December at different sections. This information is updated regularly on the website at: www.aacei.org. Exam Format The exam is totally multiple-choice questions. Two parts are open book and two parts are closed book. The broad subject areas included within each part are listed below. Obviously, not all subjects are covered in each exam. New exams are prepared for each examination. Part I (open book) - Supporting Skills and Knowledge Computer Operations Operations Research Probability and Statistics Basic Business and Finance Metric - English Conversion Inflation Part II (closed book) - Cost Estimating and Control Elements of Cost Costing and Pricing Capital Cost Estimating Operating/Manufacturing Cost Cost Indices and Escalation Factors Estimating Data Sources Contingency Budgeting and Cash Flow Capital Equipment Purchase, Lease, and Rental Part III (closed book) - Project Management Organizational Structures Management Theories, Behavioral Science, and motivational Management Planning and Scheduling Cost Management Quality Management Resource Management Productivity Management Contracting and Contract Administration Societal/Legal Issues of Management Constructability Analysis Part IV (open book) - Economic Analysis Value Engineering Depreciation Comparative Economic Studies Profitability Life Cycle Costs Time Value of Money Forecasting

Recognizing that there are many fields of interest within the profession -- Engineering, Construction, Manufacturing, Process, Mining, Utilities, Transportation, Aerospace, Environmental and Government - you can expect questions in any of these settings. However, as a practical matter, no one is expected to be conversant in all areas and the exam is designed to take this into account through its multiple option format and extensive use of questions of general applicability. Part I of the exam consists of 50 multiple-choice questions. Parts II, III and IV consist of two sections each. The first section has five compound questions which contain 7 multiple-choice questions each. You will choose to answer only TWO of these compound questions, resulting in answering only 14 multiple-choice questions for the first section of each part. The second section of each part consists of 20 multiple choice questions of which all must be answered. (Sample questions attached) Preparation Guidance

To assist in your preparation for the exam, you should study the list of the Required Skills and Knowledge of a Cost Engineer since it outlines much of what you need to know. You also have a number of other options. There are training workshops: In conjunction with the AACE Annual Meeting, a Foundations for Enhancing Competency in Cost Engineering seminar is held. This is one of several continuing education courses available at extra cost in conjunction with the annual meeting. This seminar is also offered in January each year at a different location. At most annual meetings there is a Skills and Knowledge track within the Technical Program on basic or advanced subjects in Cost Engineering. A typical track consists of 12-17 one-hour blocks of instruction. Attendance at any or all of these sessions is open to any meeting registrant. Specific subjects are listed on the Technical Program and described in its accompanying book of abstracts issued before each annual meeting. A number of local sections of AACE sponsor formal workshops on Cost Engineering, some specifically intended to assist candidates in exam preparation. If your section does not have such a workshop, start the ball rolling. Even if no formal workshop is available, consider a "bootstrap" style workshop wherein you and other candidates meet regularly to teach each other. Then there are written reference materials. The following two publications are most recommended - all are available from AACE. AACE International Certification Study Guide, 2nd edition. and Skills and Knowledge of Cost Engineering, 4th edition. The following publications are also recommended: Jelen's Cost and Optimization Engineering, 3rd edition and Project Management: A Reference for Professionals, written by R. Kimmons and J. Lowree There are many other publications on the market that can prove helpful also. You can find many of these by visiting AACE's website bookstore. The Professional Paper The professional paper, a pass/fail component submitted as half of the examination, must be of a quality suitable for presentation at an AACE annual, regional or section meeting; or acceptable for publication in Cost Engineering magazine. You may be able to submit a recently published article for which you were the primary author also. Now for specific guidance: A common mistake among inexperienced writers is to choose too broad a subject area. A paper of 2500 words minimum is not that long. So, chose a narrow topic area and give it good coverage. If the paper involves a subject requiring employer review and approval, make certain your bosses know you intend to write on the subject and get their blessing up front so you won't waste time. Unless you are an experienced writer, you will need to allow considerable time to develop your subject into a polished document - a good rule-of-thumb is to make a rough estimate of the time you think you will need and multiply by three. Think about your paper when you're playing golf, traveling or otherwise have time just to think. You'll be surprised how ideas suddenly come to you. But, make certain you have some means to jot those ideas down before you forget them. You should expect to go through several drafts before the final one. If you or your typist have access to a modern word processor, this process will be greatly simplified. After you complete each draft, set it aside for a couple days, then come back and review it to see if it makes sense and further refine it. Keep a copy of the latest draft in your briefcase so you can review it when traveling or at other opportune times. Of course, it is always helpful to get an outside opinion or two on the paper both for content and presentation. Most guide books on writing will tell you to outline your subject and then expand from the outline. This is fine, but often leads to "writer's block" since the writer feels compelled to write the abstract, introduction, main body, etc. in sequence and can't find the words to get started. some authors, having faced this situation, have found that the best way to get going is to start the paper anywhere you feel comfortable, usually somewhere in the main body, and work from there. Initially, you don't even need to document your thoughts in any logical sequence - just write them down as they come to you. With modern word processors you can readily organize, add, delete, and move text around to provide orderly coverage. Using this approach, you will probably find that your paper evolves to be somewhat different than originally planned. This leads to the last bit of advice - wait until the main body is complete before writing your introduction and abstract. Had you written them first, they probably would no longer fit the paper anyway. The paper can be given to proctors at the time of the examination or can be mailed directly to AACE Headquarters before the exam date. Failure to submit a paper on time can result in failing the examination.

GUIDELINES FOR PREPARING COST ENGINEERING PAPERS

Submitting a paper is an important requirement for becoming a certified cost consultant or certified cost engineer (CCC/CCE). The primary purpose is to judge the prospective certified const consultant's or engineer's ability to communicate a professional topic clearly and effectively. The prospective CCC/CCE must be the primary author (preferably the sole author) of the paper, and the body of the paper (excluding graphs, illustrations, tables, and appendices) must be at least 2500 words to be acceptable. If the paper is co-authored, it must be accompanied by a statement from all authors indicating that the prospective CCC/CCE has contributed the majority of ideas and most of the effort for the paper. Once the authorship and length criteria are verified, the paper will be evaluated for its qualities as a professional document by the AACE Certification Board. Depending on the presentation styles, professional environment, and nature of the material, a paper may be composed and organized in many different ways. The paper is expected to be typewritten in English. If it is written in another language, it must be accompanied by a translation. The following guidelines are to be used as a first approximation and a general guideline in compiling and editing the paper. 1. TITLE PAGE Include: title (about 7 to 12 words), author's ID number, date of authorship. 2. TABLE OF CONTENTS Include: chapter title, page number, section title, page number, subsection title, page number 3. LIST OF TABLES Include: table title, page number 4. LIST OF GRAPHS & ILLUSTRATIONS Include: graph or illustration title, page number 5. ABSTRACT The abstract should be about 200 to 300 words and highlight three important facets of the paper in three separate paragraphs. Paragraph one: summarize introduction; highlight the previous papers and future possible applications of the paper; what are the areas of implementation of the ideas presented and possible benefits of such implementation. Paragraph two: summarize the body of the report; specific objectives of the paper, procedural details, topics of discussion, methods of development, and highlights of the results. Paragraph three: summarize major conclusions of this paper and recommendations for future work in subject area. 11. INTRODUCTION Considering a broad point of view, what are the relevance and advantages of similar considerations to the national and/or international economy, economy/ technology, regional and local industries, etc.? What prompted you to choose this specific topic? What are the possible applications of the results of similar work? What are the benefits of such implementations (about 300 words)? Further, it may be helpful to the reader to understand the background of the writer and how the report evolved. Statements such as, The author was a member of a team assigned to study cost information flows and reporting procedures for the ABCD Power Company. This report is a condensed version of the study results, will always make a good impression. The author has drawn fully and freely on his personal knowledge of the subject of this dissertation obtained while per-forming the duties of cost engineer for ACME Construction Ltd, weakens the presentation and should be avoided. 12. BODY OF THE PAPER Describe the procedures for data collection, idea development, observations, survey or whatever forms the basis of your paper. In your own words, present and discuss the more interesting data pertaining to the area of your paper. Divide all the relevant material into logical topics and subtopics. In your own words, discuss each topic and subtopic clearly. All statements of fact should have a reference number from the list of references showing where they can be found in detail. Do not use telegraphic language or shop talk. Demerits will be applied to incorrect facts, improper causes and effects, emotional statements, and philosophical observations. If there are any illustrations in the paper, be sure to refer to them at the appropriate place in the text and indicate clearly what the illustration is meant to show. An important facet of the paper is to highlight your own contribution to the organization, arrangement, and analysis of the data. Include techniques, flow charts, computer programs, organizational charts, and other material that you may have developed or modified, as part of this independent paper. Describe all processes, procedures, equipment, and theories very clearly. Pay attention to spelling and syntax. Generally, short and concise sentences and paragraphs contribute to clarity. Using the logical structure of your paper as a guide, develop and label each section of the paper. The label should describe the contents of that segment of the paper. Further, sections should be grouped into chapters and labeled accordingly. For some papers it may be appropriate to have several subsections for each section. 6. ILLUSTRATIONS (TABLES AND GRAPHS) Include graphic or tabular presentation of data, ideas, and equipment to clarify the topic of each section of the paper. Copies of illustrations from books and magazines should be used only on rare occasions and then only with the written permission of the copyright owner. As a rule, graphs should be neatly presented for viewing from the right on 8.5 x 11 inch paper. Use drafting guides for straight or curved lines. The page number, illustration number, and a descriptive title of the illustration should be placed clearly on the page. All the necessary information to interpret the illustration should be included on the illustration sheet. 7. CONCLUSIONS From the results of the paper, what general comments can you make regarding suitability of a technique, equipment, procedure, etc.? You may cite numbers and percentages if they have already been fully presented in the earlier sections of the report. Where can these results be possibly used? Based on your introduction and data, what should one expect when implementing your recommendations? On which general area should follow-up work be concentrated? Why? All conclusions should be based on groundwork already established in the body of the report. Do not introduce any new material here. 8. SPECIFIC REFERENCES List articles, books, or reports that you have read for this paper and that you believe are specifically relevant to this paper. 9. ACKNOWLEDGEMENTS List all individuals, companies, and agencies that have provided useful advice, service, materials, or information for preparation of your paper. 10. APPENDICES On rare occasions, an appendix may be justified. This section includes data and information important to your conclusions but which could detract from the free flow of explanation of the main body of the paper. Attach to your paper any material that you feel supports or expands your paper.